Moreno Industries has adopted the following production budget for the first 4 months of 2011.

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Moreno Industries has adopted the following production budget for the first 4 months of 2011.

 

          Month             Units                Month         Units

      January               10,000            March         5,000 

 February                   8,000              April           4,000

 

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.

 

 

Required:

 

Complete the direct materials purchases budget by month for the first quarter.

 

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